By Yoram Weiss, Gideon Fishelson

ISBN-10: 0312027974

ISBN-13: 9780312027971

ISBN-10: 1349106887

ISBN-13: 9781349106882

ISBN-10: 1349106909

ISBN-13: 9781349106905

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**Additional resources for Advances in the Theory and Measurement of Unemployment**

**Sample text**

2 Vo 45 is strictly decreasing in t. Proof We show first that Vo is decreasing in t. 1. For any u E U, Tnu converges to Vo uniformly as n _ 00. It suffices, therefore, to show that T maps decreasing functions into decreasing functions. Suppose that u E U is decreasing. Now (Tu)(t, j) - (Tu)(t+ 1, j) = pet, j) ~ [I-bEvt + bu(t+ 1, j+ 1)] + [I-p(t, j)]bu(t+ 1, j) - p(t+ 1, j) ! [I-bEvt + bu(t+2, j+ 1)] - [I-p(t+I, j)]bu(t+2, j) = p(t+ 1, j) ~ [u(t+ 1, j+ 1) - u(t+2, j+ 1)] + fp(t, j) - p(t+ 1, j)] !

As example 1 demonstrates, our results may be generated by exogenous unobserved characteristics. 3 shows that this exogeneous heterogeneity, combined with the special informational structure, creates an endogenous effect on the wage. , because they have different history). As a result of this interaction, it is necessary to investigate both the hazard rate and the wage when testing which model is correct. What looks surprising in the above result is the fact that we have to use the assumption that p(k)-p(k+ 1) ~ p(k+ l)-p(k+Z).

They 'forget'. 4 Further suppose that the system is at a steady state distribution (the conditions for which are stated in section A-3 of the Appendix), and all firms know this distribution. Let 8 k be the probability that a worker with k checks will be drawn at random from the population of workers, and let 8 = (80 , 8 1 , • • • ). 10) 30 Search Unemployment: Theory and Measurement This means the Vf is independent of k or of time trends. Accordingly, Vo is independent of time. 2 Let {Vo(k)}k~O' vo(k)E [0,1] for every k, be given.

### Advances in the Theory and Measurement of Unemployment by Yoram Weiss, Gideon Fishelson

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